GoZefo to offer guaranteed buyback option to woo more consumers

GoZefo.com is now offering its consumers a guaranteed buyback option to return the product once they are done using it in a bid to expand its consumer base.Aditi Shrivastava | ET Bureau | December 16, 2015, 08:35 IST

Used furniture marketplace GoZefo.com is now offering its consumers a guaranteed buyback option to return the product once they are done using it in a bid to expand its consumer base.

"By assuring that we will pick up the product from them at a predetermined rate, we’re simply reminding customers that at the end of their usage cycle we are there to help them sell their products as well," said Karan Gupta, cofounder at Zefo.

The move has helped the four month old startup - which faces competition from larger new product e-commerce players such as UrbanLadder, FabFurnish and Pepperfry as well as newer rental startups such as Furlenco and Rentomojo - increase conversion rates by over 40%.

Zefo promises its customer 70% of the buying price within six months and 60% of the buying price for 6 to 12 months of usage.

"This makes the effective cost of the furniture much cheaper than even rentals," said Gupta, a former Helion Ventures analyst who co-founded Zefo along with fellow IITians Himesh Joshi, Rohit Ramasubramanian and Arjit Gupta.

The startup works on an inventory-led model and promises availability verified photographs and detailed assessment on each item.

RentoMojo, which is backed by IDG and Accel Partners, does not own any of the items that it puts out on rent.

Instead, it ties up with a few suppliers who want to earn rental income. Furlenco, which is focused on the furniture market and raised cash from Lightbox Ventures earlier this year, owns the furniture that it rents out as supply continues to remain a challenge in this industry.

UrbanLadder provides online furniture via an inventory-based and controlled supply model, while its rival Pepperfry follows a wider marketplace model. As the tide of previously-owned goods hitting the market grows, more e-commerce platforms including Snapdeal and Ebay are offering such goods alongside brand new products.